Are you eligible? Heres what should happen if you are.
What happens if you mess with someones credit reports? Ask TD Bank. It just landed itself an order to pay $28 millionfor mistakes that illegally tarnished consumer credit reports.
The Consumer Financial Credit Bureau (CFPB) caught TD Bank red-handed for sharing inaccurate and negative information about its customers with credit bureaus information that could seriously damage a persons credit score.
As any consumer knows, things like credit reports, employment screening reports, tenant screening reports, and other background reports, are used by financial institutions, employers, and landlords, among others, to decide whether to extend credit, housing, or employment to a consumer.
The CFPB said that the inaccurate information shared by TD Bank related to credit card and bank deposit accounts, including accounts TD Bank knew or suspected were fraudulently opened. After the bank realized it was botching its reporting to consumer reporting companies, it took far too long to correct many of its errors.
A customer sounds off
Need proof of the impact TD Bank had on a consumer? Hows this: I get an email from Samsung that will give you a great deal on a s24 ultra. Free 0% interest for 24 months, so I figured I'd do that. I applied and figured things would be fine... I have a 796 credit score, no late payments, and don't have a lot of debt... NOPE I was denied, claimed Jason of Hartselle, Ala.in his ConsumerAffairs review of TD Bank.
And he wasnt the only one voicing a concern. Hundreds of consumers did the same in complaints to the CFPB especially TD Bank customers in Florida which led the country in the issue. Person after person (example) told the agency that they suffered severe financial and emotional distress that their negative rating has caused them and will continue to cause until it is resolved.
This is the CFPBs second enforcement action against TD Bank. In 2020, the CFPB ordered TD Bank to provide an estimated $97 million in restitution to about 1.42 million consumers and to pay a $25 million penalty for illegal overdraft practices.
The CFPBs investigation found that TD Bank illegally threatened the consumer reports of its customers with fraudulent information and then barely lifted a finger to fix it, said CFPB Director Rohit Chopra. Rather than treating its customers fairly and following the law, TD Banks management clearly cared more about growth and expanding its empire through mergers. Regulators will need to focus major attention on TD Bank to change its course.
ConsumerAffairs reached out to TD Bank for comment, and this is what a spokesperson had to say:
Long before this settlement, TD self-identified these matters and voluntarily and proactively implemented enhancements to our furnishing and dispute handling practices. TD cooperated fully to resolve this matter and is committed to continuing to deliver on its responsibilities to its customers.
How this mess will get cleaned up
What does this mean for you? Plenty. If youre a TD Bank customer, you should immediately check your credit report and make sure there aren't any mistakes. If you find something's off, dispute it with TD Bank and the credit bureau. Second, keep a close eye on your accounts. If you see anything suspicious, report it immediately.
If TD Bank messed up your credit, you might be eligible for compensation part of the $7.76 million in redress the bank will have to pay to tens of thousands of consumers affected by its unlawful behavior. If you're due part of that, TD Bank told ConsumerAffairs just to sit tight --"No action is required. TD will begin issuing checks to impacted customers after the CFPB approves the redress plan."
TD Bank will also pay $20 million to the CFPBs victims relief fund.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-09-12 11:38:20
